Strategies for Improving Small Business Productivity

In essence, improving your small business productivity just means working smarter; keeping the same service quality without increasing resources. You can look for ways to improve efficiency just about anywhere in your company. Customer expectations and technological advances have increased the need for higher productivity. After all, small businesses in the United States compete with companies in countries such as India. And these countries’ labor costs are a fraction of what they are in North America. So, your small business should be looking for ways to accomplish more within a time-crunched 24-hour.

Productivity is typically measured using labor productivity. It measures your company’s ability to produce a good or service. But how do you quantify productivity for service companies? For example, how do you measure a therapist’s diagnosis or the quality of a high school principal? Given that inputs vary, there are many factors to consider. For instance, the competition and costs, available technology, employees’ skills, etc. All of these factors and more can help your business either thrive or hinder it from achieving success.